The Implications of Legalizing Marijuana - Research Paper Example

? The Implications of Legalizing Marijuana The Implications of Legalizing Marijuana Introduction There are debates globally on the effects of legalization of the use of marijuana. Those opposing the legalization give out the many social and health effects of consumption of marijuana. These effects include distorted sense of time, paranoia, short-term memory loss, anxiety, magical or "random" thinking, depression and many others. Consumption of marijuana can also increase the risks for lung cancer. Those supporting legalization of the consumption of marijuana argue that the prohibition has reduced the consumption only in the public. They also argue that the legalization would earn the government more income through taxation. They also believe that the legalization will reduce the government’s expenditure on enforcing the prohibition. This paper aims at discussing the economic impacts on the legalization of the use of marijuana. Source of Revenue through Taxation The legalization of the use of marijuana will highly affect the mode of pricing. When the use of a substance is illegal, the price is always high. This is because of the risk involving the marijuana dealers. However, high taxation by the government can make the prices high again. Economists argue that high taxation might lead to the emergence of black market trade. Considering this, it would be advisable to keep taxes minimal in order to reduce the possibilities of emergence of black markets. A good example is the effect of high prices of heroin in Norway where the level of consumption decreased with the increase in the prices. One would argue that the volume of consumption by addicts is likely not to change with an increase in price (Morgan 2011). Some economists would disagree with this since studies on consumption of substances like alcohol and cigarettes show that heavy users responded highly to prices as compared to the other users. This will mean that the only means to get the maximum income from the legalization of marijuana is minimizing the taxation (see Figure 1). This will increase the volume of marijuana consumption, which will mean a high total tax collection. The figure illustrates the relationship between the price of marijuana and its consumption. Figure 1. Marijuana price-demand curve. (blogspot.com) Reduction of Government Expenditure on Marijuana Use Regulation The legalization of the consumption of marijuana will also reduce the government expenditure on the regulation of its use. This will be possible through saving of money that the government spends on marijuana arrests. Records in the United States of America show that there is a very high rate of both marijuana possession and trafficking arrests (Brux 2011). With the legalization of marijuana, the resources allocated for these kinds of arrests can go to another law enforcement sector. The resources spent on judicial processes involving marijuana possessors and traffickers could be saved for other purposes. Records have it that more than 3% of judicial trials in the United States of America involve the marijuana possessors. The percentage of resources spent on such activities can go to other activities. In the United States of America, the number of drug laws criminals in the correctional facilities is more than offenders of the other laws (Clements & Zhao 2009). For instance, in the year 2011, the total number of sentenced was 197050, with 94600 of those were sentenced in drug related trials. The closest to it were the violent offences, which had 14900 inmates. With the legalization of the consumption of marijuana, the government will save the economic resources used for the correction of drug offenders. This money can take care of other economic needs of the country. The legalization of marijuana will also reduce the number of criminal activities involved with its peddling. Since the drug will be legal, more socially decent organization will venture into the marijuana supplying business. Occurrences like this will reduce the necessity of criminal activities involved in the supplying of drugs. This will reduce the number of drug peddling related crime; thus, there will be minimal expenditure in curbing such activities. Marijuana as an Industrial Raw Material Apart from its use as a drug, marijuana has other applications. Marijuana can be used for rope, textile, paper and canvas production. Its use in paper manufacturing can reduce the rate of tree cutting (Morgan 2011). This will increase forestry and reduce the rate of global warming. With a decrease in global warming all the other agricultural activities will benefit. Increased agricultural production will benefit the country’s gross income. The use of marijuana for making textile will also supplement cotton industry. This will be another reason why the growth and consumption of marijuana should be legal. In comparison to the other plants that are used to produce the above products, marijuana has a relatively low production cost and can grow in almost all kinds of climate. These characteristics make marijuana an economically valuable plant. Production of Fuel The discoveries made by scientists have proved that marijuana can produce a highly reliable fuel (Arnold 2010). Currently, the United States of America depend on fossil fuel for 90% of their energy. Unlike the fossil fuels, the marijuana fuel usually produces only carbon dioxide to the environment when it burns. The carbon dioxide is not a big threat to the environment, as marijuana and other plants always use it for their growing. In fact, before the introduction of the marijuana tax Act in the year 1937, Henry Ford, the founder of Ford Motor Company used marijuana fuel for his vehicles. This shows that legalization of marijuana will definitely give the United States of America an option to fossil fuel. The environmental effects of the burning of fossil fuel can be limited by the using of the marijuana fuel. The commercial production of this fuel will also provide employment opportunities to the citizens and earn the government some revenue. The legalization of the use of marijuana might also highly benefit the government of the United States of America. This is because it will likely reduce the rate of consumption of hard drugs, such as cocaine and heroin (Brux 2011). This is because marijuana will serve as a legal substitute of these drugs. The fund that would have been spent for the regulation of these substances can as well take care of other national needs. Because of its intoxication capability, marijuana can act as a substitute for alcohol. This will make intoxication affordable to the citizens given that with the legalization marijuana might cost less than alcohol. Medical Uses of Marijuana Marijuana’s medicinal value also makes it important to the country’s economy. Some of the marijuana’s applications in medicine are: pain relief, treatment of cancer, elimination of opioid dependence and many others (Clements & Zhao 2009). The use of marijuana in medicine will help to eliminate costly alternatives thus, lowering the cost of providing healthcare to the citizens. This will also help to sustain the health of citizens and get a healthy and economically productive nation. The funds raised from taxation of marijuana can treat people addicted to the hard drugs. This will aid in advancing the health standards of the citizens thus, improving the country’s economy through involvement in physical and intellectual production. Introduction of Marijuana Related Commercial and Economic Activities The legalization of marijuana will also bring rise of various industries. There will be the companies that will venture into its value addition (Arnold 2010). Though marijuana is consumable in its raw form, there are many ways in which value addition would help make it friendly to the users. Examples of such services are flavoring and packaging. There will emerge the companies that will process and package marijuana for medicine industry. With the finished products, there are also firms that will engage in the distribution and supply of these products. These business entities will offer many employment opportunities to the citizens of the United States of America Through these activities, the economy is likely to benefit a lot from the legalization of marijuana. The government will also earn a lot of revenue from the operation of these businesses. Legalization of marijuana would reduce the amount of fund seeping out of the country’s economy into the pockets of international criminal organizations. Most marijuana used in the United States of America makes its way to the country through smuggling from other countries. This means that most of the income earned from these transactions goes to the foreign criminal organizations. With the drug legalized, they will have all the profits from the trade of marijuana. They will also reduce the attraction of international criminal organizations to their boundaries. This might lead to a decrease in the number of criminal activities within the countries’ borders. Conclusion With the reasons given above, there is no doubt that legalization of marijuana will be highly beneficial to the economy of the United States of America. The country is likely to earn a lot through revenue collected from the activities related to the production and sale of marijuana. The country will also save many of its funds that are used in marijuana related law enforcement. Some might say that there will be social consequences of the legalization, but the truth is most of these are happening even now. With the rate at which other countries are legalizing the use of marijuana, it will soon be a globally legal drug. References Arnold, R. A. (2010). Microeconomics. Mason, OH: South-Western Cengage Learning. Brux, J. M. (2011). Economic issues and policy. Mason, OH: South-Western Cengage Learning. Clements, K. W., & Zhao, X. (2009). Economics and marijuana: Consumption, pricing and legalisation. Cambridge, UK: Cambridge University Press. Morgan, K. (2011). Legalizing marijuana. Edina, MN: ABDO Pub. Co. Marijuana price-demand curve (n.d.). Retrieved from: http://1.bp.blogspot.com/-D73y4tjs028/Txre6uR-mjI/AAAAAAAAAZI/qoGrp-xb7EU/s320/marijuana.png Read More